TNPA Signs 25-Year Lease with Freeport Saldanha to Unlock R6.9bn Industrial Pipeline
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The Transnet National Ports Authority has signed a 25-year lease with Freeport Saldanha covering land in the port's Southern Precinct, backing an investment pipeline valued at about R6.9 billion for the Saldanha Bay Special Economic Zone.
The Transnet National Ports Authority (TNPA) has signed a 25-year lease with Freeport Saldanha covering land in the Southern Precinct of the Port of Saldanha, providing long-term tenure for industrial activities linked to the Saldanha Bay Special Economic Zone (SEZ).
The agreement follows the conclusion of a Commercial Terms Framework between the two parties, which established the basis for the lease. Freeport Saldanha's investment pipeline is valued at approximately R6.9 billion and includes projects across marine and bunkering services, industrial development and manufacturing, and energy infrastructure. Projects under consideration include liquefied natural gas (LNG) import and storage capacity.
Freeport Saldanha chief executive officer Xola Sithole said the lease gives prospective investors greater certainty. “Investors commit capital where there is certainty, and this lease provides it,” he said, adding that with 25 years of secured port-linked land, Freeport Saldanha can offer investors one coordinated package of industrial land and TNPA-facilitated access to port facilities. “Our focus is to turn this agreement into signed investor leases, construction activity and jobs for Saldanha Bay and the wider West Coast.”
TNPA chief executive officer Mohammed Abdool said the agreement would support investment and activity across the logistics value chain. “This agreement is more than the leasing of land. It is about creating the conditions necessary for investment, industrial development and long-term growth,” he said, adding that strengthening the relationship between the Port of Saldanha and the SEZ would attract investment, support exports and unlock opportunities across the logistics value chain.
The lease will allow investors to use port infrastructure alongside industrial facilities while supporting future freight and logistics demand and further industrial development in the area. It forms part of Transnet's Reinvent for Growth Strategy, which includes improving port efficiency, making greater use of existing infrastructure and attracting investment.
Freeport Saldanha is South Africa's only port-based SEZ, with target sectors including marine and offshore services, green hydrogen and energy, logistics and warehousing, manufacturing and engineering, and agro-processing. The Port of Saldanha is one of South Africa's eight commercial seaports and plays a role in the country's freight and export infrastructure.